EOS Price Surges Over 10% After Voting System Announcement For Its $35 Million Savings Account

Omar Faridi
  • 29 Aug 2018
  • /
  • In #EOS
  • A voting system will reportedly be implemented so that EOS community members can collectively decide how to spend the funds from the cryptocurrency platform's $35 million savings account.
  • Following this announcement, the price of the EOS token surged by over 10%.

EOS.IO, a blockchain-based platform that aims to facilitate the horizontal and vertical scaling of decentralized applications (DApps), has been criticized for its controversial governance model in which just 21 block producers have most of the control over a multi-billion dollar digital asset network. However, EOS.IO’s native token, EOS, has surged by over 10% in the past 24 hours, according to data from CryptoCompare.

The cryptocurrency’s price shot up after it was announced on August 27th that its developers would be “building a voting system to help with the decision making” for the platform’s $35 million savings account.

No Plans Regarding EOS's Savings Acccount

Block.one, a privately held company focusing on “high performance” blockchain technologies, created the EOS.IO savings account when it began developing the EOS platform in May of 2017. When the savings account was created, EOS’s developers did not formulate any plans regarding how its funds would be spent.

Tp decide where the funds should be invested (or used), the EOS team will be implementing a voting system that will allow the crypto’s community to make decisions regarding how the funds are to be managed. Most of the EOS community members are reportedly supportive of the new voting system, however, it may take some time before they collectively decide how to spend the funds.

Crypto Market Showing Recovery Signs

At press time, EOS tokens are up by over 10% and currently trading at $5.93, with a market capitalization of over $5.3 billion. As reported by CryptoGlobe, Bitcoin (BTC) price surged past $7,000 on August 28th and is currently trading at $7,082.91. This is a significant increase in the flagship cryptocurrency’s price, considering it had dropped below $6,000 around mid-August.

Moreover, it seems that cryptocurrency prices, as a whole, are beginning to recover with NANO, the “global currency”, surging by as much as 84% to $3.27 (per token), before correcting to around $3.07. South Korean firm ICON, which aims to develop communication channels between multiple blockchains (blockchain interoperability), also saw its ICX token surge by over 20% on August 27th to over $.96 but its price has also now corrected to $.90 at the time of writing.

Short-Term Price Movements "Don't Tell Us Much"

According to recent comments from Litecoin (LTC) founder Charlie Lee, “it’s hard to predict [cryptocurrency] prices” and it’s also difficult to determine just how long a bear market will last, or how long it will take for digital currency prices to recover.

Despite the declining market capitalization of the cryptocurrency market, Lee noted that bitcoin and litecoin adoption had actually increased. Moreover, the MIT graduate said that while short-term cryptocurrency price movements “don’t really tell us much...in the future, the price will reflect the success of the [crypto]currencies]."

Block.one to Start Voting for EOS Block Producers With 9.5% of Circulating Tokens

Francisco Memoria

Block.one, the firm that developed the EOS.IO software, has announced it’s going to start voting on EOS block producers (BPs) using its less than 9.5% share of the circulating tokens.

According to an announcement published by the firm, it’ll start leveraging its “small, but significant” EOS token share to vote on those who maintain the EOS network, the 21 block producers who are elected by holders.

Block.one notes in its announcement its share of the total circulating supply of EOS is going to keep on dropping as new tokens are created through inflation and used to reward block producers. It added it has been observing the network’s operations and governance to learn and understand “how to maximize performance, alignment, and reliability.”

The firm added that it now feels ready to “begin playing our proportional role, with the focus of continuing to support healthy upgrades of the EOS network.” As such, Block.one wrote:

Block.one will participate publicly in the conversation and share and comment on ideas and proposals that we believe positively improve the governance, performance, and overall competitiveness of the EOS network.

The firm added its goal is to “highlight improvements and features” it believes will “uphold the integrity of the network” and push it to new heights. The network is said to be able to process 5,000 transactions per second and ensure a half-second block time.

The EOS network is based on a delegated proof-of-stake (DPoS) consensus algorithm where 21 block producers are elected to run the network’s nodes, and Block.one doubled down on its positives claiming proof-of-work blockchain are “often governed and controlled by a small number of mining organizations and can be environmentally abrasive with high electricity requirements.”

This month, the EOS network faced “degraded performance” over an increase in traffic caused by the EIDOS token airdrop. This saw the price of CPU on the network increased over 100,000% as Coinbase admitted only “addresses with significant CPU resources staked are able to have their transactions processed in a reasonable amount of time.”

Featured image by Arnaud Jaegers on Unsplash